U.S. stocksrallied as growing expectations that lawmakers will salvage a $700 billion bank- rescue package helped theStandard & Poor's 500 Index recover more than half of yesterday's 8.8 percent plunge. JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. jumped more than 13 percent as Senate leaders vowed to resume work on the bailout plan this week after its rejection spurred the S&P 500's biggest decline in two decades.Hess Corp. and Schlumberger Ltd. added more than 6 percent as optimism about the plan helped oil rebound from a $10-a-barrel drop. The S&P 500 rose 52.21 points, or 4.7 percent, to 1,158.60 at 2:34 p.m. in New York. The Dow Jones Industrial Average gained 392.90, or 3.8 percent, to 10,758.35 after tumbling a record 777.68 points yesterday. TheNasdaq Composite Index added 4.4 percent to 2,070.61. Three stocks climbed for each that fell on the Big Board. Even with the advance, the S&P 500 is poised for its worst month since 2002, with a decline of 10 percent, and is down 9.9 percent for the quarter. The cost of borrowing dollars overnight rose the most on record as banks hoarded cash after the defeat of the bailout plan by Congress. About 758 million shares changed hands on the floor of the New York Stock Exchange, 10 percent more than at the same time a week ago. European stocks rose, while Asian shares declined. Government bonds in the U.S. and Europe fell. The dollar climbed the most against the euro since the shared currency's 1999 introduction.
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